Fazer plans to close its operations in Karkkila, Finland, and move the production of its xylitol pastilles and chewing gum to its factory in Lappeenranta.
The Finnish food company claims the move will enable more efficient development and production of its xylitol products. It says the change will allow the production of more consumer-driven products, more innovative tastes and shapes, and different sizes and formats of packaging.
According to Fazer, its facility in Karkkila does not have the same development possibilities as its confectionery factory in Lappeenranta. Moving its operations will reportedly enable the company to better respond to the evolving consumer demand and remain competitive in the long run.
Since 2015, Fazer says it has invested nearly €25 million in its Lappeenranta factory and will continue to develop its production there in the future.
“By focusing the production to bigger units, we can manufacture high-quality products more efficiently, which is a prerequisite for us to maintain our competitiveness,” said Mika Salomaa, head of Fazer confectionery supply chain.
He added: “Also, when different types of products are manufactured in one factory, we are able to provide our employees opportunities to expand their knowhow and skills and hence ensure the continuation of our operations also in exceptional circumstances.”
This marks the second production facility that Fazer will close this year, following its announcement in January to close its facility in Kaarina, Finland. By moving the plant’s operations to its facility in Koria, Fazer said it would be able to meet the large-scale production required of its Yosa oat products.
Fazer has 22 permanent employees in Karkkila as well as five employees with on-call contracts. The company says it will start collaboration negotiations affecting all employees at the Karkkila factory.
The possible closure of the Karkkila factory will take place in the winter of 2021.
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